Original application filed under Section 19 RDB Act for recovery of Rs.33.28 Lacs. Tribunal held in favour of bank, directing uniform simple interest at 8%p.a. and allowing recovery via sale of mortgaged properties under SARFAESI Act.
Recovery of Rs.33,28,200.44p with simple interest @8.0%p.a. allowed; Recovery Certificate issued.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.1449/2022
PRESIDED OVER BYMRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 01.08.2022
DATE OF DECISION: 24.07.2024
Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having the Head Office at Plot No.4, Sector 10, Dwarka, New Delhi 110075 and a branch amongst at Village Daudhar Distt. Moga through its General Power of Attorney Holder, Sh. Sandeep Kumar, Senior Manager, Punjab National Bank, Circle Office, Partap Singh Road, Moga.
……..Applicant
Versus
(Borrower/Mortgagor)
….……Defendant
Advocates:
Argued by Ms. Lovedeep Kaur, Advocate proxy for Ms. Puja Sharma, Advocate for the applicant Defendant is ex-parte
FINAL ORDER
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Documents executed:-Voter ID Proof of Defendant in file 3, which is Annexure A4 to this OA; Agreements for Hypothecation dated 03.09.2013, which is Annexure A5 to this OA; Affidavits dated 20.08.2013 along with their English translations, which are Annexures A7 & A8 And A7T & A8T to this OA; Balance and Security Confirmation Letters dated 16.03.2016 & 31.12.2018, which are Annexures A9 & A10 to this OA; Legal Notice Dated 21.07.2022 with postal receipt, which is Annexure A11 to this OA and Statement of Account with certificate, which is Annexure A12 to this OA. 5. The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.33,28,200.44p, which is recoverable and the defendant was served recall notices but they did not repay the outstanding amount, therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 21.05.2024.
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The Tribunal is of the considered opinion that sometimes in appropriate cases the prerogative of mercy is the brightest jewel in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including nature of the mortgaged property, undertaking of the defendant, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yester years, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @8.0%p.a. in the loan account from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.
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Pronounced by me in the open Tribunal . Dated: 24.07.2024
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant bank is entitled to recovery of the outstanding loan amount and interest.
Whether the claim of uniform simple interest at 8.0%p.a. is just and appropriate under the circumstances.
2 provisions across 2 enactments
Punjab National Bank
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
